Biden Administration Tightens Controls on EV Supply Chain to Counter China and Russia

The U.S. Department of Energy (DOE) has issued proposed guidance on interpreting the definition of “foreign entity of concern” (FEOC) from the Bipartisan Infrastructure Law (BIL). This term determines eligibility for DOE grants related to battery materials and manufacturing.

The proposed interpretations define key terms and provide clarity on when foreign entities, specifically those from China, Russia, North Korea, and Iran (“covered nations”), would be considered FEOCs.

Notable aspects include:

  • Considering subnational governments and state-owned enterprises from covered nations as foreign governments
  • Defining control as 25% or more cumulative ownership of voting rights, board seats, or equity interest by a covered nation
  • Allowing control via licensing arrangements or contracts from covered nations that give effective control over production  
  • Providing guidance on calculating attenuated control through tiered ownership structures

The guidance aims to provide clear rules for battery supply chain companies to evaluate if they have FEOCs in their upstream suppliers.

DOE is seeking public comment on the proposed interpretations and guidance, including on potential attempts to evade restrictions and the use of the Secretary’s determination authority to address unauthorized conduct by covered nations.

Our Thoughts

America will rightly prioritize securing electric vehicle supply chains critical to its economic competitiveness and national security. Recognizing China’s leadership in EV sales and production, we should consider employing policy measures to protect this critical industry and allow it to prosper.

More Articles for You

Three Of F1’s Greatest Designers Will Join The Festival Of Speed’s F1 75 Celebration

As the Festival of Speed prepares to celebrate the 75th anniversary of the Formula 1 World Championship, Goodwood is delighted …

New Kia EV5 Debuts In Singapore As First Model To Be Assembled There

Kia’s electric EV5 has finally been introduced into Singapore after making its debut at the local motor show earlier this …

New Morgan Supersport Blends Retro With 21st Century Tech

At Morgan, change happens gradually. Over the 116-year history of the British company, the cars’ appearance and feel have remained …

Toyota Planning Big EV Push With 7 Models For North America

There’s some big news from Toyota. According to Bloomberg, Japan’s No 1 carmaker plans to launch seven new all-electric cars …

Callum Designs Reveals Sensational Jaguar E-Type Restomod

Boasting an enviable portfolio that includes the Aston Martin DB7, Jaguar XK, and F-Type, former Jaguar design director and current …

Phantom Goldfinger Debuts At Villa d’Este Event To Celebrate Centenary

A double homage has just been paid to one of the world’s most spectacular cars at arguably the world’s premier …